In order to restore confidence in the conglomerate that saw its value plummet by nearly $70 billion after a small New York short seller released a damning report, billionaire Gautam Adani’s troubled group clung to a $400 million (Rs 3,260 crore) investment by Abu Dhabi’s International Holding Co. in its flagship firm’s share sale.
Adani Group clutches onto $400 million investment by Abu Dhabi’s International Holding Co.
On this occasion, IHC stated that it will contribute around $400 million to Adani Enterprises’ follow-on share sale and affirmed its confidence in the conglomerate’s fundamentals despite the decline in share value. According to the company’s CEO Syed Basar Shueb, “We see a strong potential for growth from a long-term perspective and added value to our shareholders,”
IHC is under patronage of Sheikh Tahnoon Bin Zayed Al Nahyan, the president’s brother and national security adviser for the UAE.
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Twists and Turns of Adani-Hindenburg Case
Hindenburg Research’s study, which was released on January 24 and raised concerns about Adani Group’s debt levels as well as potential stock manipulation, accounting fraud, and usage of tax havens, has recently put the Adani Group in the limelight. Adani Group responded to the Hindenburg report with a 413-page document in an effort to win back public trust in the business conglomerate, but it did not have much of an impact; the stock values of the majority of group firms fell further, and important dollar bonds hit new lows.
According to the US short seller, who disputed assertions that its report on Adani Group’s misdeeds was a “calculated attack” on India, a “fraud” cannot be concealed by nationalism or a bloated response that left out significant allegations.
Angry Adani Group has hit back by referring Hindenburg as “Madoffs of Manhattan” report was “not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India.”
Jugeshinder Singh, CFO of the Adani Group, also voiced confidence in the success of Adani Enterprises’ public offer.
He compared the actions of Indian investors taking part in the sell-off to the Amritsar Jallianwala Bagh massacre during the British colonial era.
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